The leader of the Generation Rent campaign group has accused Chancellor Rishi Sunak of “stacking the economy against private renters who have to work for a living.”
Responding to last week's Spring Statement, Baroness Alicia Kennedy - director of Generation Rent - says: “We are in a dangerous moment with millions about to be plunged into fuel poverty and people already in poverty facing desperate choices between heating and eating.
“When inflation is running at 7.4 per cent, the Chancellor should have targeted help towards those least able to manage, by raising benefits at the same rate and making sure Local Housing Allowance covers rising rents. The higher National Insurance threshold will help many private renters but not our most vulnerable neighbours.
“Taking the National Insurance and income tax changes together, the Chancellor is stacking the economy against private renters who have to work for a living.”
She says that while the Health and Social Care Levy will cancel out the planned income tax cut for workers, landlords will be better off because they they don't pay National Insurance on rental income.
“If he wants economic growth, the Chancellor should be shifting taxation from work to property wealth, and encouraging investment in more productive parts of the economy” says the Baroness.
“The VAT cut on energy efficiency measures is welcome but until the government acts on its promises to raise minimum energy efficiency standards for landlords and improve security of tenure, renters won’t feel the benefit.”